How to calculate compound interest for RD?
By lovedude
@lovedude (4447)
India
November 9, 2011 2:10pm CST
I was reading offers by banks that you can get upto 10% interest on RD.. but how to calculate that interest and maturity amount by my own?
say suppose I put 1000 Rs. for 10 years with 10% interest.. how can I get maturity amount? any formula?
2 responses
@scheng1 (24650)
• Singapore
10 Nov 11
Hi Lovedude, if you have a financial calculator, you can use the function to get the answer.
If not, you can use excel spreadsheet for the same answer.
Year 1, start with $1000, and at 10% interest, you will get $1100 at the end of year 1.
At the second year, the capital is $1100, and with 10% intereste, you will get $1210.
If you continue on, until the last year, you will get the final answer.
1 person likes this
@stanley777 (9402)
• Philippines
12 Dec 11
To compute your earnings, say the principal is 1000 Rs plus 10% every year.After a year 1000 + 10% =1100 Rs, the next year your beginning balance is 1100 + 10% = 1210 Rs and so on.
It's just my idea, but I guess I'm most probably right.Anyway you can ask the bank too, if you have doubts.
